This is to inform everyone that we have just received official notification from our cognizant Federal Agency, Office of Naval Research, new facilities and administration (F&A, known customarily as “indirect cost”) rates for the next three years (fiscal year 2012-2014).

These new rates will be included in proposals for NEW funding and competing continuations. No existing grants and contracts will be affected and F&A costs will continue to be applied at the rate listed in the individual grant or contract award document. Unless the particular program has a limit on the total amount of funding that may be requested, F&A rate increase will not reduce the amount available for research.

The new F&A rate effective July 1, 2011, is 53% of modified total direct cost (MTDC) for on-campus work. The off-campus rate continues to be capped at 26%.  MTDC, the base to which the indirect cost is applied, is total cost excluding subcontract amounts above $25,000, equipment and tuition. Our F&A rate agreement for DOD contracts continue to be 60% MTDC for on-campus and 32% MTDC for off-campus work. The rate for Intergovernmental Personnel Act (IPA) agreements is now 10%.

Examples of F&A rates at other institutions include: William & Mary (48%), GMU (49.07% through June 30, 2011), Lehigh (61%), MIT (67.5%), UVA (54%), VCU (49.5% through June 30, 2011), and Virginia Tech (58.6%).

Increased F&A rates are directly attributable to our collective success as an institution. The changes from the last F&A rate in 2008 have been in building depreciation, equipment depreciation and operations/maintenance. The rates reflect enhancement of the University’s infrastructure from the cost of building, occupying and maintaining new construction.

If you have any questions regarding implementation of this change, you may contact Mr. Julian Facenda at jfacenda@odu.edu.